It depends. Go the section again to see if the exclusion was applied. Make sure you met the Physical Presence Test or Bonafide Presence Test. Also, the Foreign Income Exclusion is capped at $126,500 or $253,000 if Married Filing Joint and both spouses exclude their foreign income. Any income amounts over these limits are taxable income, but you may claim a foreign tax credit for the excess income that is over the limit(s).
If you weren't able to exclude your income, you may claim a Foreign Tax Credit that will reduce the US Tax Liability on the foreign income. You can claim this by going to:
- Log into Turbo Tax
- Go to Deductions and Credits
- Estimates and other Taxes paid
- Foreign taxes
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